My wife and I (National Guard 11+ years) have made an offer on our first home, which the bank just accepted. It's a fixer-upper and needs some repairs, so we are looking at the 203k rehab loan, but we might not be able to come up with enough to cover the 3.5% downpayment plus closing costs, so we might have to try to do the VA guaranteed loan.
What kinds of things is the VA appraiser going to be looking for? I've heard they want the house to be habitable, which means different things to different appraisers. We're having the home inspection done in a few days, but I know for sure we need a water heater, potentially a new furnace, some plate covers for a few electrical outlets/switches, and maybe some flashing around the chimney. Anything else I should try to fix up before the appraisal? We did a hold-harmless with the owner (a bank) so we could do anything that needs to be done before closing. I don't want to be stuck trying to get everything done in 1 or 2 weeks since I know it'll take a few weeks to get the VA appraiser in there right now, and our closing date is August 13th, so I'd like a heads-up.
Also, what other sorts of issues can come up with the VA guaranteed loan? What should I be watching for? I know for sure the house will appraise for more than our offer, which was really low. Oh, and the property has a small barn about 15 feet behind the house that may or may not need to be torn down - will that matter to a VA appraise?
